Consider a $1,000 investment that returns six per cent annually. Without any further investment it will be worth just $3,207 after 20 years, but jumps to $10,286 after 40 years. Similarly, an annual investment of $5,000 at six per cent return is worth $194,964 after 20 years but skyrockets to $820,238 after 40 years. Time and compound interest are an incredibly powerful combination.



But it’s not just compound interest that comes into play for those who begin retirement planning as soon as they enter the workforce. There are many other benefits that help ensure a comfortable lifestyle at the end of one’s career.



One is the fact that the longer the investment timeframe, the greater the chance of riding out the volatility in various markets along the way. Another has to do with the development of great investment habits early in one’s working life. Such habits are essential to the development of a desired retirement lifestyle – whether or not you have a high-salary job right now, what actually matters in the long run is what is in your savings. 



Planning early and visiting a financial adviser can help ensure the structure of your investment plan is suitable for your specific needs and wishes. It helps free up funds that can be used for other purposes throughout your life, whether it be other investments, travel, building a house or enjoying a hobby. Retirement will be looked after by the long-term plan, and therefore gives you greater flexibility with how you use your other savings in the meantime – whether it’s confidently holding investments outside of the superannuation environment, or simply enjoying greater cash flow. 



Many early adopters of a superannuation or retirement plan make regular visits to financial advisers throughout their lives, ensuring their financial knowledge remains up to date. The simple fact that they begin their financial education before most even start thinking about retirement means they are ahead of the game, as they will make fewer financial missteps along the way. 



Finally, the more time people spend putting money into superannuation, the more they are able to take advantage of changing government policies, such as co-contribution schemes and low-income superannuation schemes. 



If you know a young person who has recently entered the workforce, you can share your knowledge about the benefits of seeing a financial adviser and encourage them to get on the path for a healthy financial future sooner rather than later.